Success stories

The Youth Guarantee has significantly facilitated structural reforms and innovation in policy design across EU Member States. In 2013-2015, Member States adopted a total of 132 labour market measures targeting young people, highlighting a strong focus on youth employment policies. Member States can be divided into three groups according to the degree to which the Youth Guarantee has acted as a driver for reform.

Significant reforms and innovative measures have been introduced within the framework of national Youth Guarantee schemes.

For instance, in Bulgaria, a network of youth mediators was put in place in 2015 to reach out to non-registered NEETs in their direct environment and activate them. Youth mediators act as intermediaries with public institutions that provide social, health, educational and other services.

The apprenticeship system in Spain has undergone significant structural reforms, leading to an increase in the number of apprentices from 4 000 to 15 000 in just three years (between 2013 and 2016). During the same period, the number of enterprises participating in apprenticeship training grew from barely 500 to 5 660.

In 2015, Finland launched one-stop guidance centres for youth, which aim to strengthen and simplify services for young people and to eliminate the duplication of activities. Located in 35 municipalities so far, they provide low-threshold support to all young people below the age of 30, including personal advice and guidance, support in life management, career planning, social skills, as well as education and employment support.

Early intervention and fast-acting measures to support young people's activation are essential and, in many cases, structural reforms are needed, such as improving vocational education and training systems and strengthening the public employment service's (PES) capacity to implement the Youth Guarantee.

Cost-benefits of a Youth Guarantee

Recent research estimates the benefits of establishing a national Youth Guarantee scheme much higher than the costs. The total estimated cost of establishing Youth Guarantee schemes in the Eurozone is €21bn a year, or 0.22% of GDP (Source: ILO report – eurozone job crisis).

However, inaction would be muchmorecostly. Young people not in employment, education or training are estimated to cost the EU €153bn (1.21% of GDP) a year – in benefits and foregone earnings and taxes (Source: Eurofound report on youth unemployment).

Not all Youth Guarantee measures are expensive. For example, a strengthened partnership between stakeholders is effective without requiring large budgets.

Funding

To make the Youth Guarantee a reality, national budgets should prioritise youth employment to avoid higher costs in the future. The EU will top-up national spending on these schemes through the European Social Fund and the €6bn Youth Employment Initiative.